The world’s largest tire producer of Japan, Bridgestone, was licensed to build a tyre manufacturing plant in Dinh Vu Industrial Zone, Hai Phong City in early February 2012. On this occasion, Vietnam Business Forum interviewed Mr Susumu Yazaki, General Director of Bridgestone Tyre Manufacturing Vietnam Co., Ltd. Le Hien reports.
Why did Bridgestone choose Vietnam, rather than other Asian countries like Thailand, India or Indonesia, to expand its existing production facilities?
The newly built plant in Vietnam will bring the group’s total factories in the world to 50 in 21 countries. This is part of the overall development plan of our group. In Southeast Asia, we have two factories in Indonesia and three in Thailand. But, earthquake shook our facilities in Indonesia and a historical flooding damaged our Thailand-based factories. Hence, after we completed market surveys in some countries, we chose Vietnam for its advantages in infrastructure, human resources and stable political environment. In my opinion, Vietnam should grasp this opportunity.
Some foreign investors complained about unsatisfactory infrastructure and human resources in Vietnam. What do you think?
We performed thorough survey processes and our remark was close to reality. Hai Phong is a leading economic development engine of Vietnam, especially the marine economy. Vietnam also has a relatively complete infrastructure system. We have tested infrastructure items like electricity, water and gas supply in Dinh Vu Industrial Zone and they are in very good conditions and guarantee long-term operations of our facility. In addition, tax rates in Vietnam are lower than in other ASEAN nations. This is an advantage for Vietnam to attract foreign investors in the context of global economic downturn.
According to Chairman of Hai Phong People's Committee, Duong Anh Dien, this is the largest FDI industrial project in the city to date. How do you think about the municipal government’s support for your investment project?
At the licence handover ceremony, I expressed my appreciation for the city’s leaders’ enthusiastic supports from the preparation process to licensing process, particularly from the city’s Chairman and Dinh Vu Industrial Zone. This US$575 million project is the largest industrial project in the city; thus, the process of examining the investor’s capabilities is relatively time-consuming. Vietnam has many lessons to this effect. With commitments from the municipal government and supports from central authorities, we met with many advantages in our working process, especially administrative procedures and investment policies.
Could you provide more information about the project and its employment?
The Bridgestone tyre factory is invested by Bridgestone Corporation of Japan with a total capital of US$575 million. It will produce 24,700 tires a day and generate 1,900 jobs. The project consists of two phases, with the first spanning from July 2012 to October 2013 and the second phase stretching from May 2013 to May 2014. The made-in-Vietnam products will be exported to European and US markets.
Bridgestone Corporation, headquartered in Tokyo, Japan, is the world’s largest tire manufacturer. Its products are being sold in 150 countries around the world. With an 80-year operating experience, the corporation has nearly 50 manufacturing facilities in 21 countries and has 140,000 employees. Its revenues approximated US$37 billion a year.
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